Economic Downturn – Impact on Hospitals
According to a recent AHA report on the impact of the economic downturn on hospitals, 59% of hospitals surveyed are cutting administrative costs and 53% are reducing staff in response to economic concerns
Understanding the Velocity of Change in Health Care
The key drivers of health care have different rates of change. Coverage expansion is on a two-to-three-year timeline. Reimbursement reform is on a 10-year timeline. Cultural transformation of institutions is on a 30-year timeline. Yet, there are many aspects of health care that are on a short fuse. Budget cuts at the federal level can happen almost immediately. Network changes or contracts can occur in a year. Some new technologies can have immediate impacts, while others take decades to reach full deployment.
Reduce Hospital Cost
Everyone knows the nation's health care bill is too big and that rising medical costs are unsustainable. We
can't wait. Engineers -- that's right, engineers -- also have some thoughts about reducing health care costs.
Their ideas aren't incorporated into law and don't usually make headlines. But they have many advantages:
They have been tested, are relatively inexpensive to implement and don't require new government regulations.
8 Ways to Cut Labor Costs
Labour costs are one of the largest expenses for most hospitals, so tight management of staffing is essential
to maintaining financial health.
Cut Cost by Reducing Inefficient Activity
Many hospital CEOs and thought leaders estimate that 30 to 50 percent of all health care spending can be described
as waste — activity that provides no benefit to patients. This adds up to more than $1 trillion a year in the United
States. Instead of merely slashing reimbursements or providing less care, there is a clear opportunity to do more —
and provide the right care — with less waste and less spending.
Diagnostic Imaging Utilization
While a significant technological advance, diagnostic imaging is also the fastest growing medical
expenditure in the United States, with an annual 9% growth rate - more than twice that of general
medical expenditures (4.1%) according to the American College of Radiology website (May
2004). The cost of diagnostic imaging is projected to increase 28% between 2000 and 2005 to
nearly $100 billion annually, according to a Booz Allen Hamilton analysis. This article examines
the reasons for increasing utilization and costs, notes the benefits, and suggests strategies for